Understanding and dealing with high interest rates on microcredit : a note to policy makers in the Asia and Pacific Region

This paper deals with issues surrounding micro-credit interest rates, an important subject in microfinance. The paper explains why micro-credit rates are so high. It deals with inappropriate comparisons rate ceilings and evidence from the region. The Asian Development Bank hopes that the paper will help policy makers gain a deeper understanding of these issues. This understanding will hopefully further enable them to pursue measures that would ensure both the continued growth of the microfinance industry, and the enhanced access of poor people to affordable micro-credit.